None of us enjoy reading the fine print on a detailed document but it can be vital to avoiding hidden costs or extra fees that a company is trying to unfairly push on you. There are plenty out there that are trying to confuse and overwhelm customers with vague and excessive wording in their policies.
The Loss Damage Waiver (LDW) is a form of car hire excess insurance and this guide will help you to avoid any secret extra charges hidden in the fine print of an insurance firm’s policy. This is particularly important for the LDW as there are plenty of things you may incorrectly assume it will cover.
In a Nutshell
The LDW usually comes as standard in most company policies for trips around the UK or abroad. You will not need to seek it out as it will either be included or listed as an optional extra offered to you by the firm. This form of car hire excess insurance is there to guard you against extra financial costs if your hire vehicle is lost, stolen or purposely damaged by another party.
Whilst the LDW is, of course, an essential piece of car hire excess insurance to have in place before you depart on your trip, you should be aware of what it does not protect you against. The rental company is still likely to charge you an ‘excess’ fee which can be extremely high, and will no doubt spoil your trip whether it is close to home or abroad.
Collision Damage Waiver (CDW)
The CDW is similar in the sense that it requires the insurance firm to limit the financial responsibility you must bear for any incident that happens whilst you have the hire car. What you need to be wary of here, however, is that the CDW is a form of car hire excess insurance that won’t protect you against the cost of repair to anything outside of the vehicle’s main body. Damage to the windscreen, windows, roof or tyres are not covered by a CDW policy.
The way to protect yourself against costs not covered by either the LDW or CDW is to take out a full car hire excess insurance policy. You can choose either single trip or annual coverage that will shield you against damage or theft all year round.
So you’re now fully ‘in the know’ when it comes to both the LDW and the CDW. The thing to remember is that neither promises full cover against unforeseen incidents. However, you can ensure you’re fully protected by making sure you have taken out a full policy that includes both the Loss Damage and Collision Damage Waiver, as well as whatever other coverage you may need – it’s a small price to pay for peace of mind!
Sam Walker is a specialist insurance expert at LowerHire, a company that offers low-cost single trip and annual multi-trip car hire excess insurance policies. Travellers can rest easy knowing they will be fully protected against any hidden hire car costs and look forward to a stress-free rental experience.
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